Many New Jersey businesses may ultimately decide that their best option for securing space is to enter a lease rather than buy commercial property outright.
On the other hand, many residents of this state own commercial land, including space inside malls and shopping centers. Even if real estate is not their full time career, property owners may see leasing as a great opportunity to make some additional income.
Both sides will want to think carefully about what they put in their commercial lease agreement. Unlike residential leases, commercial leases are frequently negotiated and are likely to vary, even between two tenants in the same commercial building.
They also tend to have longer terms than do residential leases, which means that both sides can be locked in for a long haul, possibly even in the face of changed business circumstances.
Good leases go beyond minimum standards
Like other leases, the minimums of a commercial what include items like the amount of rent, the term of the lease and what the rent does and does not cover.
Any agreement must also be mindful of New Jersey’s laws. The general rule is that a contract cannot be in violation of state law.
However, just applying minimum standards rarely leads to a good result in commercial leases. Each side will need to apply the law to its own circumstances and business needs.
For example, it is important carefully to delineate who is responsible for what repair.
To some extent, a landlord will usually agree to maintain common areas, like the walkways in an indoor mail. However, in the commercial market, it can be difficult to pin down exactly where the tenant’s responsibility starts and the landlord’s responsibility ends.
Because commercial leases often last years, it may be important also to negotiate periodic changes in rent as well as renewal options and options to end a lease early.